New research into how businesses have adapted to cost of living crisis

New research from Santander UK has revealed that nearly two-thirds (65%) of UK retailers have found running their business is harder now compared to previous years due to the rising cost of living. And nine in ten (87%) of these struggling companies say this has been the “toughest winter in memory” for business.

Businesses have been forced to adopt new measures to remain viable as inflation has soared and the economy has stalled. Rising energy (cited by 61% of retail business owners with a high street presence) and materials costs (47%), customers spending less money than in the past (41%) and having to increase staff wages (36%) are just some of the many ways in which the rising cost of living has hit the growth and profits of local high street shops as many have had to focus on survival.

Operating costs have increased for 80% of retail businesses with a high street presence in the past few months, rising by an average of 18%.  60% report that their cashflow has been negatively affected by the rising cost of living, with many business owners reporting having to dip into company savings (41%), borrow money from a bank (29%) and dipping into their own personal savings (28%).

Aston spoke to John Baldwin, Santander UK’s head of commercial clients.

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